Outlook for Rabo Real Estate Group
Bad debt costs at 14 basis points
During 2009, FGH Bank had to deal with several clients that had difficulties. As a consequence,
value adjustments amounted to EUR 22 (0) million. Expressed as a percentage of the average
loan portfolio, bad debt costs stood at 14 basis points.
Rabobank foresees no speedy recovery of the market conditions for real estate. Housing
consumers and real estate users and investors in the Netherlands are likely to remain cautious
in 2010. In France, the demand for owner-occupied houses continues, with relatively strong
results, particularly in proportion to the limited investments. The demand for owner-occupied
houses in Germany seems slightly on the increase. Although Rabo Real Estate Group is well-
positioned, 2010 will be a year full of challenges for all real estate units, with the development
divisions continuing to operate carefully and assessing projects very critically. Rabobank
foresees no strong growth of the loan portfolio in its financing activities, and the bad debt
costs are expected to be at a high level. Bouwfonds REIM's assets under management are
expected to grow. Given the lower level of activities, Rabo Real Estate Group considers an
attitude of austerity appropriate for its business operations.
Rabo Real Estate Group could strengthen its market position by defining quality of real
estate and sustainability further. Besides energy, sustainability also involves other aspects,
such as the environment, multifunctionality, integrity, transformation, mobility, usage quality,
future value, transparency and historical conservation, that each play an important part. The
collaboration with local Rabobanks and other group entities will be intensified. This means
that, for example, Bouwfonds Property Development will work more closely with the local
Rabobanks in mortgage sales and that Bouwfonds REIM is to develop real estate funds for
Rabobank's private banking clients.
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Report 2009 Rabobank Group
